Indonesia may get lower loan support from CGI: Ginandjar<\/p>\n
JAKARTA (JP): Indonesia may not be able to get a large enough
\nloan commitment this year from the Consultative Group on
\nIndonesia (CGI) to finance the state budget for the next fiscal
\nyear, Coordinating Minister for Economy, Finance and Industry
\nGinandjar Kartasasmita said here on Friday.<\/p>\n
Ginandjar said the donors grouped in the CGI, particularly the
\nWorld Bank and the Asian Development Bank, had nearly reached the
\nlimit of allowable exposure to any one country.<\/p>\n
"It will be tough to get the same amount as last year. But it
\ndoesn't mean it is impossible... Economic diplomacy is very
\nimportant," Ginandjar said, adding that the country still needed
\nmassive amounts of international financial aid to repair its
\neconomy.<\/p>\n
Indonesia received some US$7.9 billion in loan commitments
\nfrom the CGI in July 1998.<\/p>\n
Ginandjar said the July 26 to July 27 meeting with the CGI
\nwould go forward as planned despite calls to delay the meeting
\nuntil a new administration was formed in November.<\/p>\n
"All CGI members have agreed to proceed as planned," he said.<\/p>\n
He said the upcoming CGI meeting would only result in loan
\ncommitments from major multilateral and bilateral donors, while
\nthe details of the loans would have to be worked out by the next
\nadministration.<\/p>\n
Indonesia held a landmark general election on June 7, and a
\npresidential election is scheduled for November during the
\nGeneral Session of the newly formed People's Consultative
\nAssembly.<\/p>\n
Provisional election results show the Indonesian Democratic
\nParty of Struggle (PDI Perjuangan) led by popular opposition
\nfigure Megawati Soekarnoputri with a commanding lead.<\/p>\n
Ginandjar said that prior to making any loan commitments, CGI
\nmembers would first discuss specific topics with the government.<\/p>\n
"In the past, the topics included human rights and East
\nTimor," he said, referring to the former Portuguese colony which
\nwas annexed by Indonesia in 1976.<\/p>\n
"But I think East Timor will no longer be an issue," he said.<\/p>\n
The United Nations is organizing a direct ballot on August 8
\nto allow the East Timorese to decide whether the province will
\nremain a part of Indonesia with wide-ranging autonomy or separate
\nfrom Indonesia.<\/p>\n
Ginandjar also said the troubled province of Aceh would not be
\namong the topics discussed.<\/p>\n
Political unrest has escalated in the gas-rich Aceh over the
\npast several months as separatist guerrillas have intensified
\ntheir demands for independence.<\/p>\n
"We are still deciding on the topics. We have met with people
\nfrom the Asian Development Bank and we'll be meeting with the
\nWorld Bank at the end of this month.<\/p>\n
"The important thing is to ensure a smooth transition of
\n(political) power," he said.<\/p>\n
Ginandjar also declined to disclose how much the government
\nwould request from CGI.<\/p>\n
"We're still discussing it. First we have to check our balance
\nof payments and the estimated need for the (next) budget," he
\nsaid, adding that the government has not yet calculated the cost
\nof the bank restructuring program and other expenses or the
\nprojected state revenue.(rei)<\/p>",
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